If you've just received a job offer or salary revision, the first question you probably have is: “What will my in hand salary be?” Your CTC (Cost to Company) and take home salary are very different numbers. This guide explains exactly how to calculate in hand salary from CTC and what deductions reduce your take home pay.
What is CTC vs In Hand Salary?
CTC (Cost to Company) is everything your employer spends on you — basic salary, HRA, special allowances, employer PF, gratuity, insurance, and bonuses. Your in hand salary (net salary or take home salary) is what actually hits your bank account after all deductions.
| Component | Included in CTC? | Deducted from Salary? |
|---|
| Basic Salary | ✅ | — |
| HRA | ✅ | — |
| Special Allowance | ✅ | — |
| Employer PF (12%) | ✅ | Not paid to you |
| Employee PF (12%) | — | ✅ Deducted |
| Income Tax (TDS) | — | ✅ Deducted |
| Professional Tax | — | ✅ Deducted |
| Gratuity | ✅ | Not paid monthly |
Step-by-Step: CTC to In Hand Salary Calculation
- Start with CTC — e.g. ₹12,00,000 per year
- Subtract employer PF — 12% of basic (if basic is 40% of CTC = ₹4,80,000, PF = ₹57,600)
- Subtract gratuity — 4.81% of basic = ₹23,088
- Gross salary = CTC - employer PF - gratuity = ₹11,19,312
- Subtract employee PF = ₹57,600
- Subtract income tax (based on regime chosen)
- Subtract professional tax = ₹2,400 (₹200/month)
- Net salary = in hand salary
Quick CTC to In Hand Salary Table
| Annual CTC | Monthly In Hand (New Regime) | Monthly In Hand (Old Regime*) |
|---|
| ₹5 LPA | ~₹38,000 | ~₹38,000 |
| ₹8 LPA | ~₹58,500 | ~₹55,000 |
| ₹10 LPA | ~₹72,000 | ~₹68,500 |
| ₹12 LPA | ~₹85,000 | ~₹80,000 |
| ₹15 LPA | ~₹1,03,000 | ~₹98,000 |
| ₹20 LPA | ~₹1,32,000 | ~₹1,25,000 |
*Old Regime assumes ₹1.5L 80C + ₹25K 80D deductions
Use Our Free In Hand Salary Calculator
Instead of manual calculations, use our free in hand salary calculator to instantly convert your CTC to take home salary. Enter your CTC, choose your tax regime, add deductions, and see your exact monthly in hand salary with a complete breakdown.